What To Look For In An Extended Warranty

Buy Auto Warranties From The Source
Buy your auto warranty direct, avoid middle man car dealer markups. Most online car extended warranty quotes are 60% cheaper.

Auto Warranty Coverage For Breakdown AND Wear & Tear
Many warranties only cover mechanical breakdown, not wear and tear. My friend's warranty refused to cover a new switch module, claiming "wear and tear".

Well funded and insured car warranty administrator
You want an administrator who deposits part of your purchase price into an insured "Claims Reserve Account" to assure sufficient funds pay a covered claim.

Auto Warranty Contract that takes effect the day you buy it
Most auto extended warranties start the clock when you buy the car. But what if you wait 12 months to buy a warranty?

Reinsurance should have "A" Rating on A.M. Best
Re-insurers backup the insurance that protects the warranty. Should the insurer fail from excessive claims, the re-incurrence kicks in.

$0 Deductible/One Deductible Per Visit
Some auto warranty contracts charge deductibles for every part repaired. Avoid the issue altogether and pay a bit more for $0 deductible.

100% Money Back Guarantee on your Auto Warranty
If you are unhappy with your auto warranty, have not made any claims, they should refund 100% before 30 or 60 days.

Transferable extended auto warranty when you sell the car
Some auto warranties end when you sell your car. Choose an auto warranty that allows you to transfer it to the next owner.

Don't Have To Buy The Auto Warranty Immediately After Buying The Car
Most auto warranties allow you to buy later. But don't wait too long, buy car warranties at today's lower cost to protect against increases.

Car Warranty Coverage For ABS Brakes and Overheating
If you have ABS brakes, verify your auto warranty covers them. Avoid clauses like "This contract does not cover overheating regardless of the cause." WarrantyDirect.com and Nation Warranty Corporation cover overheating.

Benefits: Car Rental, Towing, Travel Reimbursement
If your car is in the shop overnight, you want car rental reimbursement, and towing. Make sure it's covered during Standard Warranty Period as well. GM weaseled out on me, that's how I lost $650 in car rentals the first year I owned my Pontiac, so don't listen to car salesman lies.

Repairs Can Be Done At Any ASE Certified Repair Shop
Some warranties force you get serviced at the dealer where you bought them. Use a warranty that allows repairs to at any ASE certified shop.

Auto Warranty that pays the repair shop directly
Some warranties make you pay, then send in the receipt and wait months, allowing them to weasel out of paying. Choose a warranty that pays the repair shop directly.